Friday, October 22, 2021

£50m secured to relaunch production at Liberty Steel’s Rotherham site

GFG Alliance has secured £50 million of new funding to relaunch production at Liberty Steel UK’s (LSUK) electric arc furnace in Rotherham.

This follows the creation of LSUK’s Restructuring and Transformation Committee (RTC) in May 2021.

The provision of funding in the Rotherham site will set the platform to refinance LSUK operations in full, create a leading long-term Greensteel hub, and support the RTC’s work of creating a profitable, restructured and focused business.

LSUK will run as normal with funding for growth in working capital approved through Liberty Capital.

This will allow time to prove the operations can run efficiently which will enable them to finalise longer term debt restructuring.

“I’m pleased to report a significant advance in GFG Alliance’s global restructuring,” said Chief Restructuring Officer Jeffrey S. Stein.

“The debt restructuring we have agreed for LIBERTY Primary Metals Australia gives the business clarity and stability and secures a clear recovery plan for creditors.

“The funding we are injecting to Liberty Steel UK puts it in a strong position for business transformation and debt restructuring.

“The next stage in our global refinancing will be in Europe where a significant number of new lenders are expressing interest in refinancing our steel assets.”

Jeffrey Kabel, Chief Transformation Officer, said: “The injection of £50 million of shareholder funds into LIBERTY Steel UK is an important step in our restructuring and transformation.

“It will help to create sustainable value, ensure that Liberty has the ability to raise and deploy capital quickly in the UK and enable our businesses to demonstrate their potential and agree long term debt restructuring.”

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